Exicom Tele-Systems Limited — Q1 FY26 earnings call

Call held 13 Aug 2025

Management summary

Exicom Tele-Sys. reported a challenging Q1 FY26 with standalone revenue of INR 151 crores and adjusted PAT of INR 1.1 crores, while consolidated results were impacted by losses from Tritium. Despite project delays affecting revenue, the company maintains a strong order backlog exceeding INR 1,500 crores and improved standalone gross margins. The Hyderabad plant is on track for October commissioning, and the company remains committed to its standalone FY26 guidance, though consolidated revenue guidance may see a shortfall.

Highlights

  • Standalone revenue at INR 151 crores, adjusted EBITDA at INR 12.6 crores (8.6% margin), and adjusted PAT at INR 1.1 crores (0.7% margin).

  • Order backlog is at its highest ever, exceeding INR 1,500 crores, with hardware supply orders over INR 1,200 crores.

  • Standalone gross margin improved significantly to 32.7% in Q1 FY26 from 21.3% in Q4 FY25, driven by a richer product mix and cost optimization.

  • Secured major export wins from the Middle East and Africa, contributing 30% to current quarter's revenue, and signed a global framework agreement for EV Chargers in Southeast Asia.

  • Hyderabad integrated manufacturing plant is in advanced stages of construction, with commercial operations (SOP) expected by October 2025.

Concerns

  • Consolidated adjusted EBITDA was minus INR 38 crores and adjusted PAT was minus INR 71 crores, primarily due to losses from acquired subsidiary Tritium.

  • Q1 FY26 performance fell short of expectations, with standalone revenue down 29% QoQ and 38% YoY, mainly due to project delays in Critical Power.

  • Tritium's turnaround is taking longer than expected, continuing to weigh on consolidated profitability, leading to a potential shortfall in consolidated revenue guidance for FY26.

Key financials

  1. Standalone Revenue ₹151 Cr -38%YoY
  2. Standalone Adjusted EBITDA ₹12.6 Cr +15.6%QoQ
  3. Standalone Adjusted EBITDA Margin 8.6%
  4. Standalone Adjusted PAT ₹1.1 Cr -76.1%QoQ
  5. Standalone Adjusted PAT Margin 70%
  6. Consolidated Revenue ₹205 Cr
  7. Consolidated Adjusted EBITDA ₹-38 Cr
  8. Consolidated Adjusted PAT ₹-71 Cr
  9. Standalone Gross Margin 32.7% +53.5%QoQ
  10. Consolidated Gross Margin 39.4%

What they filed

Q1 FY27: revenue up 61.5%, net profit up 10.8% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue153 197 266 205 282 +84%277 +41%388 +46%331 +61%
EBITDA-15 -31 -16 -39 -33 −120%-32 −3%0 +100%-22 +44%
Net profit-17 -49 -62 -83 -69 −306%-68 −39%-54 +13%-74 +11%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹356 Cr Total
  • EV Charger (Consolidated) ₹103 Cr 28.9%
  • Critical Power (Consolidated) ₹102 Cr 28.7%
  • Critical Power (Standalone) ₹98 Cr 27.5%
  • EV Charger (Standalone) ₹53 Cr 14.9%

Order book

high confidence

Total value

₹1,500 Cr

as of 2025-06-30 quantified

Execution

A lot of that is service in future years

Composition

  • Hardware Supply (product) ₹1,200 Cr

Cancellations & deferrals

  • deferred: Critical Power projects, including Bharat Net and large lithium-ion battery upgradation projects, experienced level delays due to approvals and monsoons, shifting revenue to future quarters, particularly Q2.
The company has its highest ever order book, providing a strong outlook despite Q1 project delays.

Source: Prepared remarks

Capital allocation

high confidence
  • Capex ₹35 Cr
    • Integrated manufacturing plant (Hyderabad)
    We spent INR257 crores till March of '25, another INR35 crores in Q1, and the balance as of 30 June is INR108 crores. Majority of these funds will be utilized by end of September as the plant is in final stages of progress in construction.
  • Debt Debt disclosed
    • Repayment Repayment of unsecured debt using rights issue proceeds. ₹55 Cr
    • New borrowing Successfully subscribed rights issue. ₹260 Cr
    The rights issue has been positive on our debt equity ratio as well. Pre- rights issue, we were at 0.7%, and post rights issue, we are at 0.35%, which is giving us a higher leverage, lesser pressure on the interest cost and so on and so forth.
  • Liquidity Liquidity disclosed Working capital funds utilization expected in Q2 as key projects contribute to revenue buildup.
    Working capital funds, we'll see utilization in Q2. As I mentioned, a lot of the key projects, the revenue buildup will be from this quarter.

Guidance & targets

Revenue

  • Standalone Revenue Growth Revenue · FY26 · High confidence 50%
    So we had given a guidance of 50% increase in the revenue and 2.5x of the EBITDA. And that guidance still holds good. We are confident that for the remaining 9 months, we'll be able to hold on to the guidance.

    — Shiraz Khanna

  • Consolidated Revenue Growth Revenue · FY26 · Medium confidence 100%
    On a consolidated basis, I think we gave a guidance of 100% revenue growth. This is something broadly will maintain. But as Tritium is taking a little longer to turn around, there may be some shortfall in the consolidated revenue guidance.

    — Anant Nahata

Profitability

  • Standalone EBITDA Growth Profitability · FY26 · High confidence 2.5x
    So we had given a guidance of 50% increase in the revenue and 2.5x of the EBITDA. And that guidance still holds good. We are confident that for the remaining 9 months, we'll be able to hold on to the guidance.

    — Shiraz Khanna

  • Consolidated Profitability Profitability · FY27 · High confidence Profitable
    On a consolidated basis, I think profitability guidance will only be for FY '27, not for FY '26 on a consolidated basis.

    — Anant Nahata

Capex

  • IPO Fund Utilization Capex · by end of September · High confidence 108 crores
    Majority of these funds will be utilized by end of September as the plant is in final stages of progress in construction.

    — Anant Nahata

Capacity

  • Hyderabad Plant SOP Capacity · October 2025 · High confidence October 2025
    hopefully, we'll be able to do SOP by October of this year... So on the Hyderabad plant, this has developed into a stage where we can really see this as a plant.

    — Anant Nahata

  • Hyderabad Plant Utilization Capacity · next 2 years · High confidence 70-75%
    So with the current plant and machinery that we are putting, our utilization will absolutely be north of 70% to 75%.

    — Anant Nahata

What to watch in Q2 FY26

Critical Power Revenue Contribution

Q2 FY26
Current INR 98 crores (standalone)
Target Increased revenue contribution from deferred projects

Why it matters

Management stated that delayed Critical Power projects are set to lift Q2 revenue, which is crucial for meeting standalone guidance.

But at the same time, I would like to reiterate that this does not reflect our full potential as a company or the strong pipeline that we have today. ... And we have a lot of big projects to deliver for which unfortunately, could not be delivered in Q1, but the deliveries are set to lift Q2 revenue contributions and hence forth

Risks & concerns

  • Slower-than-expected turnaround of Tritium

    high

    Tritium's losses are significantly impacting consolidated profitability, leading to a potential shortfall in consolidated revenue guidance for FY26.

    Management acknowledged

  • Project delays in Critical Power segment

    medium

    Approvals and monsoons caused delays in Bharat Net and other large lithium-ion battery projects, pushing revenue recognition to future quarters.

    Management acknowledged

  • Intense competition and margin pressure in EV Charger business

    medium

    Prices have fallen due to competition, leading to margin compression, though Exicom aims to maintain industry-leading margins.

    Management acknowledged

  • Challenges in importing rare earth materials

    low

    Geopolitical factors affecting rare earth materials caused minor production delays (e.g., 80% production last month for one charger category), but management expects no significant impact on overall numbers.

    Analyst downplayed

Q&A highlights

5 direct, 1 evasive
Maintenance of FY26 Revenue and EBITDA Guidance Direct
So we had given a guidance of 50% increase in the revenue and 2.5x of the EBITDA. And that guidance still holds good. We are confident that for the remaining 9 months, we'll be able to hold on to the guidance.

Analyst questioned how the company plans to achieve its ambitious FY26 guidance given the Q1 miss, and management reaffirmed standalone targets while acknowledging consolidated challenges.

Asked by Sahil Patani

Timeline for Consolidated Profitability Direct
On a consolidated basis, I think profitability guidance will only be for FY '27, not for FY '26 on a consolidated basis.

Analyst probed on the timeline for the company to become profitable on a consolidated basis, given consecutive losses, and management clarified it's a FY27 target.

Asked by Sahil Patani

Gross Margin for New Products (Harmony Gen 2 and Tritium TRI-FLEX) Partial
I can't give you exact specific numbers, but this is the first time where we have been able to give a better value product in terms of features, more things, better aesthetics, better durability and increase our gross margin at the same time.

Analyst asked for specific gross margins on new products, which management did not disclose but confirmed they are in line with expectations and better than previous portfolio.

Asked by Samraat Jadhav

Operational Status of Hyderabad Plant Direct
So, we're going to start operation in October. You saw some pictures in the presentation that are at very advanced stage.

Analyst sought clarity on the commissioning timeline for the new Hyderabad plant, a key capacity expansion project.

Asked by Samraat Jadhav

Capital Utilization of Hyderabad Plant Direct
So with the current plant and machinery that we are putting, our utilization will absolutely be north of 70% to 75%.

Analyst inquired about the expected utilization rate of the new Hyderabad plant, indicating its potential contribution to future capacity and efficiency.

Asked by Shashi Kant

Impact of Rare Earth Material Challenges on EV Industry Partial
But on an overall year basis, quarter basis, I don't think the impact will be significant, which will make a difference in numbers for us.

Analyst raised concerns about geopolitical factors affecting rare earth materials and their impact on Exicom and the EV industry, to which management stated a minor, non-significant impact.

Asked by Sagar Gupya

Comparison with Competitors (Servotech) Evasive
So I would just advise to compare apple versus apple, that's a company much more focused on government business, which is good. But if we have limited capacity, we try to do business, which best serves as the return for the capacity.

Analyst challenged Exicom's performance relative to newer competitors like Servotech, questioning why Exicom isn't achieving similar growth, and management responded by differentiating business models.

Asked by Sagar Gupya

R&D Budget Allocation and Innovations Direct
And not exactly equal, but broadly, EV charging would be, let's say, 60% of the expense, critical power would be 40% of the expense.

Analyst sought details on R&D spending breakdown and upcoming innovations, highlighting the company's focus on in-house controller design as a key differentiator.

Asked by Samraat Jadhav

3 min read 7 chapters

Detailed narrative

Q1 FY26 Financial Performance Overview

Exicom Tele-Systems reported standalone revenue of INR 151 crores for Q1 FY26, with an adjusted EBITDA of INR 12.6 crores (8.6% margin) and adjusted PAT of INR 1.1 crores (0.7% margin). This represents a 29% QoQ and 38% YoY decline in standalone revenue. Consolidated revenue stood at INR 205 crores, but adjusted EBITDA was negative INR 38 crores, and adjusted PAT was negative INR 71 crores, primarily due to losses from the acquired subsidiary, Tritium.

Critical Power Segment Performance and Outlook

The standalone Critical Power revenue was INR 98 crores, and consolidated was INR 102 crores. This segment's performance was below expectations due to project-level delays, including Bharat Net and large lithium-ion battery upgradation projects, caused by approvals and monsoons. These deliveries are now set to contribute significantly to Q2 revenue. The company secured major export wins from the Middle East and Africa, which contributed 30% to the current quarter's revenue and are expected to boost export business this year.

EV Charging Business Momentum and Strategic Wins

The EV Charger business showed strong momentum, with standalone revenue of INR 53 crores, a 61% YoY growth compared to Q1 FY25. The company entered the electric trucking segment and secured an OEM win in the luxury car segment. Notably, Exicom signed a global framework agreement for EV Chargers in Southeast Asia (Malaysia, Indonesia, Thailand) and launched a new product, Harmony Gen 2, which has seen strong market response and customer adoption.

Order Book and Future Revenue Visibility

Exicom's order backlog is at its highest ever, exceeding INR 1,500 crores, with hardware supply orders alone exceeding INR 1,200 crores. This strong order book provides significant revenue visibility for future quarters. Management expressed confidence in converting this backlog into revenue, especially with the resolution of Q1 project delays and the upcoming commissioning of the Hyderabad plant.

Capital Allocation and Rights Issue Impact

The company successfully completed a rights issue of INR 260 crores, which was oversubscribed. Proceeds were used to repay INR 55 crores of unsecured debt, convert INR 107 crores of promoter loan into equity, and invest INR 85 crores in Tritium. This improved the debt-equity ratio from 0.7 to 0.35 and increased net worth to INR 910 crores. INR 35 crores of IPO funds were spent in Q1, with the remaining INR 108 crores to be utilized by September for the Hyderabad plant.

Hyderabad Manufacturing Plant Progress

The integrated manufacturing plant in Hyderabad is in advanced stages of construction, with the start of production (SOP) targeted for October 2025. The full transition of production to this new facility is expected over the subsequent two quarters. Management anticipates the plant will operate at 70-75% utilization with its current machinery, enabling high-quality, lean-cost manufacturing and supporting future growth.

Tritium Turnaround and Consolidated Profitability

The turnaround of the acquired subsidiary, Tritium, is taking longer than expected, resulting in significant losses that impacted Exicom's consolidated adjusted EBITDA (minus INR 38 crores) and PAT (minus INR 71 crores). While Tritium's order book for its TRI-FLEX product is building, consolidated profitability is now guided for FY27, not FY26. Tritium also introduced a lifetime warranty on its power modules, a first in the industry, to boost customer confidence.

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